Improvements Are Needed to Ensure Oversight of and Increase Participation in the Free File Program

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Date Issued

Monday, September 30, 2024

Submitting OIG

Treasury Inspector General for Tax Administration

Other Participating OIGs

Treasury Inspector General for Tax Administration

Agencies Reviewed/Investigated

Internal Revenue Service

Report Number

2024-400-067

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Open Recommendations

This report has 5 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
1	No	$0	$0
The Chief, Taxpayer Services, should at the start of each filing season, determine if any Free File Program partners have been identified or sanctioned for an unauthorized disclosure of taxpayer information and document actions taken to mitigate the potential risk to the Program.
2	No	$0	$0
The Chief, Taxpayer Services, should identify IRS personnel with the appropriate technical expertise to review the participating partners’ privacy disclosures and taxpayer consents each filing season to evaluate whether the format and content of written consents complies with Treas. Reg. 301.7216-3 and other IRS guidance.
3	No	$0	$0
The Chief, Taxpayer Services, should evaluate the feasibility of using additional avenues (such as letters, text messaging, and e-mails) to reach eligible Free File Program taxpayers. This should include determining if any of these avenues can be associated with increased participation.
4	No	$0	$0
The Chief, Taxpayer Services, should identify and incorporate appropriate qualitative and quantitative measures into the Free File Program communication plan that allow for evaluating the effectiveness of outreach efforts.
7	No	$0	$0
The Chief, Taxpayer Services, should develop a comprehensive MOU provision testing plan that ensures that all sections of the MOU (and addendums, as applicable) are being addressed each filing season. This should include noting which provisions cannot be reviewed along with an explanation why.